The GPW Group generated EBITDA of PLN 183.7 million in 2016, an increase of PLN 3.5 million compared to PLN 180.1 million in 2015.

The GPW Group generated an operating profit of PLN 157.9 million compared to PLN 153.3 million in 2015. The increase of the operating profit by PLN 4.6 million year on year in 2016 was mainly a result of lower operating expenses of the Group, which decreased by PLN 24.2 million or 13.9%. The GPW Group’s revenue decreased by 5.2% or PLN 17.0 million. The revenue decreased both on the financial market, by 8.0%, and on the commodity market, by 0.2%. Considering the conditions on the financial market and the commodity market in 2016, the Group maintained a cost discipline as its operating profit increased year on year. It should be noted that the decrease of revenue on the financial market in 2016 was due not only to a lower value of trade, especially on the stock market, but also reductions of fees for market participants offsetting the change of fees for market supervision effective as of 2016.

The net profit of the Group stood at PLN 131.1 million in 2016 compared to PLN 121.5 million in 2015. The increase of the net profit year on year in 2016 was driven by a higher operating profit as well as higher net financial income and expenses which stood at PLN 0.9 million in 2016 compared to a negative PLN 2.2 million in 2015.

GPW’s EBITDA stood at PLN 91.1 million in 2016, a decrease of 1.1% compared to PLN 92.1 million in 2015.

GPW generated a separate operating profit of PLN 71.7 million in 2016 compared to PLN 70.6 million in 2015.

GPW’s net profit was PLN 116.1 million in 2016 compared to PLN 96.9 million in 2015, an increase of 19.8% or PLN 19.2 million. The increase of the net profit year on year in 2016 was driven by an increase of the operating profit and an increase by PLN 19.1 million of net financial income and expenses. GPW received dividends from subsidiaries and associates of PLN 61.6 million in 2016 compared to PLN 43.1 million in 2015. The income tax in 2016 increased by PLN 1.1 million year on year.

The Polish Power Exchange generated an operating profit of PLN 55.2 million in 2016 compared to PLN 51.1 million in 2015. The net profit of POLPX stood at PLN 52.7 million and PLN 41.6 million, respectively, in the periods under review.

IRGiT generated an operating profit of PLN 31.3 million and a net profit of PLN 26.5 million in 2016.

BondSpot generated an operating profit of PLN 1.3 million in 2016 compared to PLN 2.1 million in 2015. The net profit stood at PLN 1.3 million and PLN 2.2 million, respectively, in the periods under review.

Detailed information on changes in revenues and expenses is presented in the sections below.

Consolidated profit and loss account of GPW Group by quarter in 2015 and 2016 and by year in 2014 – 2016

2016

2015

2016

2015

2014

PLN'000

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

Sales revenue

81.712

73.658

74.461

81.031

83.819

78.733

77.171

88.167

310.862

327.890

317.561

Financial market

49.803

46.763

42.971

44.488

48.990

51.508

49.215

50.242

184.025

199.955

199.962

Trading

33.247

30.941

26.561

28.330

33.213

36.221

33.142

34.372

119.079

136.948

137.795

Equities and equity-related instruments

25.575

23.756

19.234

20.955

25.907

29.020

26.114

26.900

89.520

107.941

105.295

Derivative instruments

3.195

2.825

3.040

3.142

2.979

3.134

2.645

2.820

12.202

11.578

14.821

Other fees paid by market participants

1.763

1.743

1.736

1.594

1.682

1.559

1.584

1.559

6.836

6.383

5.795

Debt instruments

2.599

2.524

2.454

2.534

2.560

2.419

2.695

2.995

10.111

10.669

11.621

Other cash instruments

115

93

97

105

85

89

105

98

410

376

263

Listing

6.140

5.790

6.129

5.871

6.040

5.683

6.536

6.237

23.930

24.497

23.960

:::Listing fees

4.924

4.941

4.966

5.087

4.742

4.551

4.885

5.051

19.918

19.229

19.049

Introduction fees, other fees

1.216

849

1.163

784

1.299

1.132

1.651

1.186

4.012

5.268

4.911

Information services

10.416

10.032

10.281

10.287

9.737

9.604

9.536

9.633

41.016

38.510

38.207

Real-time information

9.633

9.434

9.561

9.632

9.080

9.001

8.943

9.045

38.260

36.069

36.010

Historical and statistical information and indices

783

598

720

655

657

603

594

588

2.756

2.441

2.197

Other revenue

-

Commodity market

31.240

26.642

30.923

36.122

34.243

26.694

26.890

37.365

124.927

125.193

114.453

Trading

16.494

13.607

14.119

16.637

17.643

12.757

13.623

18.529

60.857

62.552

60.121

Electricity

2.535

2.315

2.686

2.655

4.563

2.876

3.406

3.545

10.191

14.390

14.455

Spot

822

612

761

781

714

589

660

798

2.976

2.760

2.386

Forward

1.713

1.703

1.925

1.874

3.850

2.288

2.746

2.747

7.215

11.630

12.069

Gas

3.052

1.383

2.303

2.497

1.716

2.300

1.621

2.675

9.235

8.311

7.385

Spot

1.017

303

484

851

648

211

430

313

2.655

1.601

659

Forward

2.035

1.080

1.819

1.646

1.068

2.089

1.191

2.362

6.580

6.710

6.726

Property rights in certificates of origin

7.991

7.419

7.066

9.527

9.158

5.787

6.939

10.486

32.003

32.369

31.003

Other fees paid by market participants

2.916

2.490

2.064

1.958

2.206

1.794

1.658

1.823

9.428

7.481

7.278

Register of certificates of origin

3.664

5.492

7.797

7.954

5.518

5.535

5.492

7.621

24.907

24.166

22.473

Clearing

11.082

7.543

9.007

11.531

11.083

8.402

7.775

11.215

39.163

38.475

31.859

Other revenue

-

Other revenue

669

253

567

421

586

531

1.066

560

1.910

2.743

3.146

Operating expenses

37.736

28.271

38.026

46.122

45.910

43.344

45.047

40.091

150.155

174.391

181.600

Depreciation and amortisation

6.085

6.797

6.541

6.370

7.013

7.010

6.619

6.195

25.793

26.837

28.769

Salaries

11.835

9.060

15.128

13.837

15.552

14.754

14.920

11.437

49.860

56.662

56.501

Other employee costs

2.770

2.574

2.764

3.192

2.676

2.517

2.958

3.275

11.300

11.426

13.042

Rent and maintenance fees

2.549

2.425

2.250

2.220

2.258

2.296

2.535

2.696

9.444

9.785

10.272

Fees and charges

(11)

(2.123)

501

11.642

5.011

6.256

6.190

6.170

10.009

23.627

22.387

incl. PFSA fees

45

(2.140)

3

11.213

4.605

5.914

5.812

5.717

9.121

22.047

22.040

External service charges

13.178

8.395

9.456

7.558

11.394

9.313

10.063

8.851

38.587

39.621

41.968

Other operating expenses

1.329

1.143

1.386

1.303

2.006

1.199

1.761

1.467

5.162

6.433

8.662

Other income

979

205

204

348

370

401

338

853

1.736

1.962

1.785

Other expenses

3.583

360

46

564

42

311

1.146

652

4.553

2.151

5.373

Operating profit

41.372

45.232

36.593

34.693

38.237

35.479

31.316

48.277

157.890

153.310

132.373

Financial income

2.311

3.430

5.246

1.963

1.863

1.997

4.406

1.675

12.950

9.941

10.360

Financial expenses

3.199

2.971

2.928

2.981

3.461

2.619

2.832

3.205

12.079

12.117

12.314

Balance on revenue and financial expenses

(888)

459

2.318

(1.018)

(1.598)

(622)

1.574

(1.530)

871

(2.176)

(1.954)

Share of profit of associates

1.236

2.296

1.354

(1.368)

(1.717)

311

(336)

212

3.518

(1.530)

3.745

Profit before income tax

41.720

47.987

40.265

32.307

34.922

35.168

32.554

46.959

162.279

149.604

134.164

Income tax expense

8.750

8.457

7.147

6.791

7.234

5.598

6.126

9.104

31.145

28.062

26.697

Profit for the period

32.970

39.530

33.118

25.516

27.688

29.570

26.428

37.855

131.134

121.542

107.467

Source: Consolidated Financial Statements, Company

Note: The quarterly and annual financial data presented in this Report for 2015 and 2014 include corrections due to a change of the VAT policy applicable to certain services provided by the subsidiary POLPX and the required correction of resulting VAT payments for previous years. Details of the change of the VAT policy applicable to services provided by POLPX and the resulting corrections are presented in Note 31 of the Consolidated Financial Statements of the Warsaw Stock Exchange for 2016.

Consolidated statement of financial position of GPW Group by quarter in 2014 - 2016